The Farmers' Union of Wales is supporting research that could lift the ban on the popular ethnic delicacy, produced when the skin of a sheep or goat is blow-torched to give a characteristic charred flavour.

The meat is illegal because the animals are currently slaughtered on unlicensed premises and retain specified risk material such as brain and spinal cord.

FUW President Gareth Vaughan said there was an evident demand for the meat that could only be met at present by people acting outside the law.

"The FUW has been discussing the matter with the Food Standards Agency, who have initiated scientific research into the feasibility of producing this meat hygienically in licensed abattoirs," he said. "This research is on-going, and the results should be published in 2005."

Earlier this year Mohammad Asghar, chairman of Plaid Cymru's Newport East branch, told Ceredigion farmers that legalisation would provide financial benefits for them.

"Welsh farmers are losing out because there is a huge market for smokies, halal and kosher meat and they are not seeing any of the profit," he said.

"It has not been proven medically that smokies are harmful to people and we want the Government to reconsider its position."

Last November NFU Cymru president Peredur Hughes called for investigations into a legitimate way of producing smokies.

Speaking at a meat crime conference organised by the Chartered Institute of Environmental Health in Cardiff, Mr Hughes warned that the trade in illegal meat could jeopardise consumer confidence and demand for Welsh lamb and beef.

But he added, "There is a market for this trade and we should try to establish a legitimate and lawful way in which this market can be satisfied."

The conference in Cardiff called for tougher sentencing of convicted smokie producers and dealers, pointing out the fines imposed in recent cases failed to cover the costs of prosecution.

But Mr Vaughan said the FUW, like other organisations, including the FSA, believes that the best way to halt a highly-lucrative criminal trade is to find a way to legalise smokie production.

"Such a move is an attractive proposition because it would bring to an end the illegal trade in smokies, while at the same time allowing every farmer to take advantage of a new market sector."

That would require a change in food safety law at a European level.

But Mr Vaughan said, "If the FSA research does discover a way of producing smokies legally and hygienically in licens- ed abattoirs, the FUW will lead the campaign within Europe to ensure the law is changed.

"This will not impact on all the good work that is already being done to promote Welsh lamb as a premium, high-quality product.

"Smokies are produced from cull ewes, and if a way of adding value to the finished product can be found, then it will benefit farmers and the customers who enjoy this type of meat."